Tuesday 14 April 2009
The Big Shock
Listening to Professor Warwick McKibbin at the Wednesday Lunch at the Lowy Institute last week I was struck by how the GFC can be understood as an "underlying debilitating disease" with the first symptoms dating back to 1997. Professor McKibbin stepped through the "major shocks" from the Asia Crisis (1997/98) through to the collapse of Lehman Brothers in late 2008. But the truly "Big Shock" has been a "synchronized loss of confidence". And now the number one policy for government agencies around the world is to "instill confidence!" Makes you realize how fragile we are doesn't it? You can read more at: www.sensiblepolicy.com
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